The following information only concerns individual shareholders who are tax residents of France.
Shareholders who are not resident in France for tax purposes should consult their tax advisor.
If your shares are directly registered, in March of each year, Société Générale Securities Services will send you the imprimé fiscal unique (IFU) tax form, which shows your dividend income and any proceeds from share sales during the prior year.
The 2016 French Finance Act did not change the rules for taxation of dividends and capital gains.
Taxation of the dividends received during the 2016 tax year
- Prélèvements sociaux withholding taxes at the aggregate rate of 15.5%
- 21% withholding tax set off against the personal income tax liability (waived in some cases)*
- Personal income tax at the sliding scale rate, with a 40% allowance depending on how long the shares have been held
Total withholding tax: 36.5%
*The request for exemption was to be returned before November 30, 2015.
Taxation of the capital gains realized in 2015
- Personal income tax at the sliding scale rate, with an allowance depending on how long the shares have been held, and withholding taxes at the aggregate rate of 15.5%.
Taxation of capital losses in France
In a decision handed down on November 12, 2015, the Conseil d'Etat eliminated the tax allowance relating to capital losses.
As a result, the calculation and disclosure rules applicable to capital gains and losses will be amended. The amended rules are to be stipulated in new guidelines, which have not yet been published by the French tax authorities.
From now on, the allowance will apply to net capital gains, i.e., after deducting capital losses from capital gains, in the order of the taxpayer's choice.
The 2016 french solidarity tax on wealth (“ISF” in France)
If you are subject to this tax, listed shares should be valued, depending on your choice, according to the last know price or according to the average of the 30 last days preceding January 1 of each year.
For the Michelin share, the 2016 figures are:
Last closing price: €105.70
Average price over the preceding 30 trading days: €103.39